Transcript Market-Based Management

Market-Based
Management, 4th
edition
Competitor Analysis and
Sources of Advantage
Chapter Six
Competitor Analysis and
Sources of Advantage
Chapter Six
– Competitive Strategy
– Knowledge as a Competitive Advantage
– Competitive Forces that Shape Competitive Position
and Profitability
 Industrial Analysis
 Competitor Analysis
 Sources of Competitive Advantage
6-2
Competitive Advantage and
Knowledge
• What is a
Competitive
Strategies?
• How does a firm establish
a competitive advantage?
Knowledge advantage
• How does a firm leverage
knowledge as a
competitive advantage?
• How does a competitive
advantage relate to profit
potential? figure 6-3
6-3
Competition and Competitive
Position
• What forces affect a
firm’s competitive
position and
profitability?
• How does a firm
maintain a competitive
advantage?
6-4
Industrial Analysis
• Why should a firm
conduct an Industry
Analysis?
to see if the environment attractive or
not
• What are the Industry
Forces?
• How are they (the
industry forces)
related to profit
potential?
1. Barriers to Entry
2. Barriers to Exit
3. Customer Buying
Power
4. Supplier Selling
Power
5. Substitutes
6. Competitive Rivalry
see the text details
• What is the Prisoner’s
Dilemma?
6-5
Competitive Position
• How does a firm determine its direct
competitors? use perceptual mapping
• How does a firm acquire knowledge about
its competitors (competitor intelligence)?
everyone in the firm, search
• Why is this knowledge important?
知己知彼 百戰百勝
6-6
6-7
Competitor Analysis
6-8
Sources of Competitive
Advantage
6-9
Cost Advantages
Three Types of
Cost Advantage:
1. Variable Cost
Advantage
2. Marketing Cost
Advantage
3. Operating Cost
Advantage
How do firms achieve
these advantages?
– Scale effects
– Scope effects
– Learning effects
6-10
Profit Impact of Cost
Advantage
6-11
Differentiation Advantages
Three Types of Differentiation
Advantage
1. Product Advantage
2. Service Advantage
3. Reputation Advantage
6-12
Profit Impact of
Differentiation Advantage
6-13
The reputation of a consumer product(左1) or service(左2) can
have a bigger impact on price premium than a product advantage
6-14
Marketing Advantages
Three Types of
How do firms achieve
Marketing Advantage these advantages?
1. Channel Advantage
2. Sales Force
Advantage
– Marketing Expertise,
Training, and Knowledge
– Strong Distribution
System
3. Brand Awareness
6-15
Takeaways/Review
• Competitive Advantage
• Competitive and Industrial Analysis
• Profit Impact of Competitive Advantages
• Sources of Competitive Advantages
6-16
Marketing Performance
Tools
Industry Analysis
Unfavorable to Favorable
Industry Forces
-100
-50
0
50
100
Index
Barriers to Entry
None
Low
Some
Mod.
High
50
Barriers to Exit
High
Mod.
Some
Low
None
50
Customer's Buyer Pow er
High
Mod.
Some
Low
None
-50
Seller's Selling Pow er
High
Mod.
Some
Low
None
50
Product Substitutes
Many
Mod.
Some
Few
None
0
Intense
Mod.
Some
Low
None
50
Price Rivalry
Industry Structure Metric
25
6-17
Marketing Performance
Tools
Cost Advantage
Leading
Relative
Com petitive
Com pany
Com petitor
Position
Advantage
Cost of Goods Sold (% sales)
48.0%
50.0%
96
4.0%
Sales, General & A dm Exp.(% sales)
16.0%
17.0%
94
5.9%
Overhead Expenses (% sales)
10.0%
12.0%
83
16.7%
Cost Advantage
6-18
Marketing Performance
Tools
Differentiation Advantage
Com pany Com pared to Com petitor Com eptitive
Differentiation Advantage
% Behind
% Equal
% Ahead
Advantage
Product Differentiation
0%
85%
15%
15%
Service Differentiation
20%
80%
0%
-20%
Brand/Company Reputation
10%
80%
10%
0%
6-19
Marketing Performance
Tools
Marketing Advantage
Leading
Relative
Com petitive
Com pany
Com petitor
Position
Advantage
Market Share
6%
17%
0.35
-65%
Aw areness (% target market)
57%
84%
0.68
-32%
Distribution (% market coverage)
43%
67%
0.64
-36%
Marketing Advantage
6-20